BILL NUMBER: SB 2041	CHAPTERED  09/27/00

	CHAPTER   772
	FILED WITH SECRETARY OF STATE   SEPTEMBER 27, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 26, 2000
	PASSED THE SENATE   AUGUST 25, 2000
	PASSED THE ASSEMBLY   AUGUST 21, 2000
	AMENDED IN ASSEMBLY   JULY 6, 2000
	AMENDED IN SENATE   MAY 15, 2000
	AMENDED IN SENATE   MAY 8, 2000
	AMENDED IN SENATE   APRIL 24, 2000

INTRODUCED BY   Senator Chesbro
   (Coauthors:  Assembly Members Thomson and Wiggins)

                        FEBRUARY 25, 2000

   An act to add and repeal Division 8 (commencing with Section
19000) of the Public Utilities Code, relating to public utilities.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 2041, Chesbro.  Public utilities:  Mare Island Utility
District.
   (1) Existing federal law required the closure of federal
installations including Mare Island Naval Shipyard.  Existing law
designates the City of Vallejo as the local reuse entity and
authorizes a Mare Island redevelopment plan.  The Municipal Utility
District Act authorizes the establishment of a utility district and
provides, among other things, for its powers, organization, issuance
of bonds, and incurring debt.
   This bill would until January 1, 2011, establish the Mare Island
Utility District, as defined, within this former federal facility.
   The bill would provide for the composition of the 5-member board
of directors for the district and require the district to commence
operations upon the appointment of the directors.  The bill would
authorize transfer of the district's operation to specified
governmental entities.  The bill would prescribe the organization and
powers of the district.  The bill would also provide that the
district would be indemnified from liability for environmental damage
to the extent provided by an agreement between the City of Vallejo
and the United States Navy.  This bill would establish new duties for
local agencies, thereby imposing a state-mandated local program.
  (2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Division 8 (commencing with Section 19000) is added to
the Public Utilities Code, to read:

      DIVISION 8.  THE MARE ISLAND UTILITY DISTRICT ACT
      CHAPTER 1.  GENERAL PROVISIONS

   19000.  This division shall be known, and may be cited, as the
Mare Island Utility District Act.
   19001.  As used in this division, the following terms have the
following meanings:
   (a) "Board" is the Board of Directors of the Mare Island Utility
District.
   (b) "City" is the City of Vallejo.
   (c) "County" is the County of Solano.
   (d) "District" is the Mare Island Utility District.
   19002.  A utility district is hereby established, to be called
"Mare Island Utility District," within the County of Solano, and the
boundaries of the district shall include all that land located within
the City of Vallejo, commonly known as Mare Island Naval Shipyard,
approved for closure pursuant to the Defense Base Closure and
Realignment Act of 1990 (Part A of Title XXIX of Public Law 101-510).


      CHAPTER 2.  ORGANIZATION AND FORMATION OF THE DISTRICT

   19010. The board of directors of the district shall have five
members who shall be appointed pursuant to this section.  A director
shall not be required to be a resident or a voter of the district.
Two directors shall be members of the City Council of the City of
Vallejo and one director shall be a member of the Board of
Supervisors of the County of Solano.  Two directors shall be "at
large" directors who are neither city council members nor members of
the board of supervisors of the county.  The City Council of the City
of Vallejo shall appoint four directors, including the two directors
who are the city council members and the two "at large" directors.
The Board of Supervisors of the County of Solano shall appoint the
director who is a member of that board.  The two "at large" directors
shall have experience in one or more of the following areas:
economic development, municipal infrastructure, or infrastructure
financing.  Three directors shall hold office for an initial term of
four years, and two directors shall hold office for an initial term
of two years.  Thereafter, all directors shall hold office for a term
of four years.  When vacancies occur, the appointing authority shall
fill the vacancy for the remainder of the term.  A director's term
shall commence immediately upon that director's appointment and
qualification.
   19012. The Mare Island Utility District shall commence operations
upon the appointment of the five directors.  If the district decides
to transfer all or part of its operation to the city or the Vallejo
Sanitation and Flood Control District or both of those entities, it
may affect the transfer upon reaching agreement with the city or the
Vallejo Sanitation and Flood Control District or both of those
entities.  If the district transfers all of its operations, the
district shall cease to exist.
   19014.  The district may be dissolved pursuant to the Cortese-Knox
Local Government Reorganization Act of 1985, Division 3 (commencing
with Section 56000) of Title 5 of the Government Code.

      CHAPTER 3.  POWERS

   19020.  The directors shall collectively comprise the board of
directors of the district and the board is the legislative body of
the district.  The board shall determine all matters and policies
necessary for the proper administration and operation of the
district.  Except as provided otherwise, the board shall have all the
powers and duties of a governing board of a municipal utility
district as provided in the Municipal Utility District Act as set
forth in Article 4 (commencing with Section 11881) of Chapter 3 of
Division 6.
   19022.  The board shall conduct its meetings and transact business
in accordance with the Municipal Utility District Act as set forth
in Article 5 (commencing with Section 11907) of Chapter 3 of Division
6.
   19024.  The district may exercise all the powers and functions of
a municipal utility district as provided in the Municipal Utility
District Act as set forth in Chapter 6 (commencing with Section
12701) of Division 6, except as provided in subdivisions (a) and (b).

   (a) The district shall provide only water, sewer, and storm water
runoff facilities and services.
   (b) The district may not have perpetual succession.
   19026.  Notwithstanding any other provision of law, the district
may enter into contracts with either the city or the Vallejo
Sanitation and Flood Control District, or both of them, to provide
contract services for the provision of necessary utilities on Mare
Island including, but not limited to, water, sewer services, and
storm water runoff services.

      CHAPTER 4.   DEBT

   19030.  The district may borrow money and incur indebtedness for
the operation of the district in accordance with the Municipal
Utility District Act as set forth in Chapter 7.5 (commencing with
Section 13371) of Division 6.
   19032.  The district shall limit any term of indebtedness not to
exceed December 31, 2010.

      CHAPTER 5.  SUPPLEMENTAL PROVISIONS

   19050.  The district may not exercise annexation powers to extend
or modify the boundaries of the district.
   19052.  The district does not have the authority to exclude
territory from the district.
   19054.  Pursuant to the Mare Island Base Reuse Plan, the United
States Navy is responsible for remediation of any environmental
contamination of Mare Island prior to the transfer of all or any
portion of Mare Island to the city.  Each transfer will be pursuant
to an agreement that includes indemnity provisions regarding the
environmental conditions negotiated between the United States Navy
and the city.  To the extent that the contractual agreements between
the city and the United States Navy permit the transfer of the
indemnity provisions from the city to the newly-established Mare
Island Utility District, the city shall have the authority to assign
and transfer the indemnity provisions from the United States Navy to
the district.  The indemnity provisions may be assigned or
transferred at the same time that the city transfers the existing
infrastructure for water, sewer, and storm water sewers from the city
to the district.  The actual transfer of the existing water, sewer,
and storm waters drainage infrastructure from the city to the
district shall occur as soon as practicable following the receipt of
the infrastructure from the United States Navy.
   19060.  This division shall remain in effect only until January 1,
2011, and as of that date is repealed unless a later enacted
statute, that is enacted before January 1, 2011, deletes or extends
that date.
  SEC. 2.  The Legislature finds and declares that a special law is
necessary and that a general law cannot be made applicable within the
meaning of Section 16 of Article IV of the California Constitution
because of unique circumstances relating to Mare Island.
  SEC. 3.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
are the result of a program for which legislative authority was
requested by that local agency or school district, within the meaning
of Section 17556 of the Government Code and Section 6 of Article
XIIIB of the California Constitution.
